Japanese Government to Embrace Linux

A Reuters article covering a story originally published in the Nikkei Shimbun says a consortium of major IT firms including IBM (IBM), NEC (NIPNY) and Oracle (ORCL) plan to sell servers and systems running Linux in Japan, following a measure by the government to promote use of the open-source OS within agencies from July.

The Japanese government has earmarked ¥1.25 trillion ($10.4b) for spending on information systems in its fiscal '07 budget. The amount could reach a reported ¥2 trillion ($16.7b) when local governments are included.

Microsoft currently runs 78% of servers in Japan, versus only 14% using Linux, according to the Nikkei.

The Japanese government regards the high penetration of Microsoft OS as excessive and is concerned about having less freedom in system's development.

Other companies expected to join the consortium include: Hitachi (HIT), Hewlett-Packard (HPQ), Dell (DELL) and NTT Data (JP: 9613).

Oracle Japan (JP: 4716) is said to be leading the effort, which could launch as early as next month.

Disclosure: The author does not own shares of any companies mentioned.